Further to oOh!media Limited’s announcement on 24 June 2016, oOh! is pleased to announce that it has completed the acquisition of 85% of Junkee Media Pty Limited (Junkee Media) for $11.05m following all conditions precedent being satisfied.
The acquisition reflects oOh!’s end to end digital strategy to increase consumer engagement and drive advertiser return on investment.
The agreement will see oOh! acquire 85% of Junkee Media for $11.05m (equivalent to a valuation of $13.0m for 100% of the company), with a right to acquire the remaining 15% of shares from the three remaining Junkee Media shareholders.
The acquisition is subject to satisfaction of customary conditions precedent and will be fully funded by debt using oOh!’s existing facilities and is expected to be Adjusted EPS accretive within the first year excluding transaction costs.
oOh! Chief Executive Brendon Cook said oOh! has been acquiring assets that not only provide advertisers more targeted audiences but also build on its content capabilities as part of its digital and data strategy. The strategy was developed three years ago to deliver clients a media channel that combined the unmissability of Out Of Home advertising with an integrated mobile, online and social digital offering.
Mr Cook said: “Native advertising is increasing in importance each year in Australia. This reflects trends in the US, where native advertising is growing at 17% per annum*.
“We started this journey with the launch of content platform Q-view and we later added Hijacked.com.au and ShortPress.com.au to deliver advertisers a 360-degree offline and online marketing channel to reach specific audiences.
“These content platforms have generated new revenue from advertisers, in categories including telco, B2B, travel, tourism and government, who have invested in campaigns that combined Out Of Home advertising with native content running across the social, online and mobile platforms.
“The acquisition of Junkee Media was the natural next step for oOh! as it is a clear market leader and has set the benchmark for native content engagement in a mobile and social world.
“Junkee Media has superior online real estate, a track-record in connecting with the desirable Millennial audience, is among the best in the business when it comes to developing native content that works and has proven its ability to amplify advertisers messages through social channels.
“With the rapid growth of short form social mobile video content and Junkee Media’s clear expertise in delivering this content, we are excited about the possibilities of delivering the best content across our market leading digital signage network in environments designed to engage with audiences.”
Junkee Media CEO Neil Ackland said “We are very excited to become a part of oOh!, a company that clearly shares our ambition to be at the forefront of digital innovation and content. The media landscape is changing at an incredible pace, and together we are uniquely positioned to benefit from the disruption.”
oOh!media Ltd
www.oohmedia.com.au
Junkee Media Pty Limited
www.junkeemedia.com
